U.S. feedlot supply tight
The number of cattle in U.S. feedlots Jan. 1 fell to the lowest level in seven years. As well, December placements fell to an 11-year low because of storms, fewer available feeder cattle and high feed costs.
The U.S. Department of Agriculture reported the on-feed cattle supply as of Jan. 1 at about 11 million head, 98 percent of last year. Trader expectations averaged 98.4 percent, in a range of 97-99.3 percent.
December placements were 94 percent of last year compared with an average trade estimate of 95 percent.
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The lower cattle numbers will support prices, but beef demand is still weak, holding the market back.
Strong pork lifts hogs
Pork prices rose, allowing U.S. hog prices to rise. The market was also supported by icy roads in the Midwest that interfered with hog delivery to plants.
However, Chicago hog futures were under pressure late in the week when talks between Russia and the United States failed to reach agreement over chicken trade. Russia has blocked U.S. chicken imports over the American practice of using chlorine to kill bacteria.
If trade does not resume, it will increase the amount of low end chicken cuts on the American market, providing competition to pork.
Iowa-southern Minnesota cash hogs delivered to plants were $51 to $52.25 US per hundredweight Jan. 22, up from $49.50 Jan. 15.
The U.S. pork carcass cut-out value peaked Jan. 20 at $78.63 and closed at $77.18 Jan. 22. The last time cutouts were this strong was September 2008. U.S. federal slaughter to Jan. 23 was estimated at 2.182 million, up from 2.176 million the previous week.
Smithfield Foods announced it is closing its slaughter plant at Sioux City, Iowa, which bought Canadian hogs.
Bison prices steady
The Canadian Bison Association Grade A youthful bulls younger than 30 months in the desirable weight range were $2.25 to $2.55 Cdn per lb. hot hanging weight.
Grade A youthful heifers younger than 30 months in the desirable weight range were $2.10 to $2.40.
Older than 30 month bulls and heifers were about 10 cents lower than younger animals.
Slaughter cows and bulls sold for $1.40-$1.50 hot hanging weight.
Sheep
There was no Beaver Hill sale last week.
Ontario Stockyards sold 1,250 sheep and lambs and 23 goats Jan. 18. All lambs sold actively at slightly higher prices. Sheep sold well, but at lower prices. Goats were steady.
